After poll-bound Rajasthan, the Andhra Pradesh government Monday announced a Rs 2 cut in VAT on petrol and diesel to check the mounting prices of these fuels.
"The central government has been imposing a heavy burden on people by steeply increasing the prices of petrol and diesel despite heavy income in the form of various levies and dividends.
"Though the state is faced with a deficit budget, we have decided to reduce the tax and ease the burden on people," he said.
The state would have to forego a revenue of Rs 1,120 crore due to the measure, he said.
A day before the opposition-sponsored Bharat Bandh against rising fuel prices, poll-bound Rajasthan had on Sunday slashed the VAT on petrol and diesel.
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